INVESTMENT APPROACH

India has a large universe of companies (both listed and un-listed). According to published data, India has ~5,500 listed companies. The Bombay Stock Exchange has more listed companies than any other stock exchange in the word. India's stock markets offer better diversification as compared to the markets in other BRIC nations. India also has over 700,000 unlisted companies spread across various sectors.

Phi Capital believes that within this large universe, several businesses in India hit growth plateaus after an initial period of growth and stability. This slowdown / plateau-ing of growth of mature businesses are often because of non-systemic impediments. These impediments may include other operational / organizational factors in addition to lack of growth capital.

Businesses may hit growth plateaus because of several non-systemic factors:

  • Want of incremental capital for growth
  • Unclear strategy for expansion
  • Succession issues at promoter level
  • Lack of management depth for expansion
  • Product limitations / lack of of tech partner
  • Operational inefficiencies / labor issues etc

Given Phi Capital’s core strength of Active Investment Management, we firmly believe that such situations where a business is sub-par because of non-systemic factors, offer great opportunity to invest capital and contribute operationally to generate value. We focus on identifying such opportunities through in-house research and our extensive industry networks. In opportunities we identify, our investment participation is structured with an emphasis on minimizing